Don’t trust any near-term bounces in Tesla shares even with the electric vehicle stock tumbling more than 50% from its peak, according to Ritholtz Wealth Management CEO Josh Brown. The widely followed trader believes the technical trend in Tesla’s stock chart has collapsed, making any rebound unsustainable. He also pointed to Tesla’s sky-high valuation of 113-times forward earnings even after the recent sell-off cut the multiple in half. “If it’s going to bounce, it should bounce right now. The problem is the chart, the trend is so fundamentally broken that … you could get a 12% rally in Tesla because [CEO Elon Musk] comes out and announces a buyback or something. I don’t think it lasts,” Brown said on CNBC’s ” Halftime Report ” on Tuesday. TSLA 1Y mountain Tesla Tesla shares have been on a roller-coaster ride since Musk went to Washington, D.C., to take on a major role in the second Trump White House. Tesla just suffered a seventh straight week of losses, its longest stretch of weekly declines since debuting on the Nasdaq in 2010. The stock rose more than 1% Tuesday, its first positive day in four. Brown said many large-cap stocks in the Nasdaq 100 index share troublesome characteristics with Tesla shares. “There are a lot of stocks like that, and a lot of big market cap stocks, and I think that’s what makes this moment very tricky,” Brown said. “There’s an old saying on the Street: ‘nothing good ever happens just below the 200-day moving average.’ I think that applies to the Nasdaq 100 right now, and most of the names in there.”
